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* Agrees to phase out financing to coal industry
* To set shorter-term targets; engage with clients
* Follows pressure from group including Amundi
By Lawrence White and Simon Jessop
LONDON, March 11 (Reuters) - HSBC will phase out
its support for the coal industry in the developed world by 2030
and in the developing world by 2040, the bank said on Thursday,
bowing to investor pressure to toughen its stance on fossil fuel
financing.
Investors managing some $2.4 trillion in assets who earlier
this year filed a resolution that would bind the bank to make
stronger commitments, have withdrawn the motion in a sign they
have reached a compromise with Europe's biggest bank.
The new goals from HSBC also include short and medium-term
targets on aligning its financing with the goals of the landmark
Paris agreement on climate change.
HSBC's announcement reinforces how the world's biggest
financial firms are bowing to mounting public and political
pressure to join the battle against climate change, by reducing
their funding of fossil fuel companies and encouraging clients
in other sectors to cut emissions.
As a result, campaign group ShareAction has withdrawn its
motion to be voted on at HSBC's annual shareholder meeting on
May 28, and the lender will instead submit its own resolution
with the backing of ShareAction and its co-filers, a group of 15
major investors including Amundi <AMUN.PA and Man Group.
"Today’s announcement shows that robust shareholder
engagement can deliver concrete results and sets an important
precedent for the banking industry," said Jeanne Martin, senior
campaign manager at ShareAction.
HSBC's new commitments go further than those made last
October when the bank set out an 'ambition' to get to net zero
carbon emissions by 2050, a goal criticised by campaigners for
not directly addressing HSBC’s lending to fossil fuel firms.
ShareAction said it had won a significant concession from
the bank in that HSBC now explicitly states the expansion of
coal-fired power is incompatible with the goals of the Paris
agreement, where in the past it had been more equivocal on the
need for clients to divest coal assets.
HSBC will report on its progress annually, it said on
Thursday, starting this year.
ShareAction targeted Barclays with a similar motion last
May, which was defeated but garnered 24% of votes cast.
(Editing by Elaine Hardcastle)
